{
  "title": "Full Dollarization: The Pros and Cons",
  "publication": "Economic Issues, December 20, 2000",
  "sourceUrl": "https://www.imf.org/en/publications/economic-issues/issues/2016/12/30/full-dollarization-the-pros-and-cons-4003",
  "canonical": "https://www.imf.org/en/publications/economic-issues/issues/2016/12/30/full-dollarization-the-pros-and-cons-4003",
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  "summary": "Analyzes the costs and benefits of full dollarization, or the adoption by one country of another country’s currency. Potential advantages include lower borrowing costs and deeper integration into world markets. But countries lose the ability to devalue, and become dependent on the U.S.",
  "sections": [
    {
      "heading": "Overview",
      "content": "- Authors: Eduardo Borensztein, Andrew Berg\n- Publication date: December 20, 2000\n- Core question: Costs and benefits of full dollarization (adoption by one country of another country’s currency)\n- Main comparison: Full dollarization versus the currency board option"
    },
    {
      "heading": "Key findings: benefits",
      "content": "- Potential advantages include:\n  - lower borrowing costs\n  - deeper integration into world markets"
    },
    {
      "heading": "Key findings: costs and risks",
      "content": "- Potential disadvantages include:\n  - loss of the ability to devalue\n  - dependence on the U.S."
    },
    {
      "heading": "Comparative analysis",
      "content": "- The analysis explicitly compares full dollarization with the currency board option, weighing trade-offs between:\n  - relinquishing independent monetary policy (full dollarization) and\n  - institutional arrangements that attempt to rigidly anchor a domestic currency (currency board)"
    },
    {
      "heading": "Subject coverage and keywords",
      "content": "- Subject: Banking, Currencies, Currency boards, Dollarization, Exchange rates, Financial crises, Foreign exchange, Monetary policy, Money\n- Keywords: Currencies, currency, Currency boards, currency risk, devaluation, dollar, Dollarization, EI, exchange arrangement, Exchange rates, foreign currency, Global, money base, unit of account\n\n---\n\n\nSource: https://www.imf.org/en/publications/economic-issues/issues/2016/12/30/full-dollarization-the-pros-and-cons-4003"
    }
  ],
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    "Authors: Eduardo Borensztein, Andrew Berg",
    "Published: December 20, 2000",
    "Series: Economic Issues",
    "Volume: 2000",
    "Issue: 004",
    "Pages: 22",
    "DOI: https://doi.org/10.5089/9781557759931.051",
    "Stock No: EIIEA024",
    "ISBN: 9781557759931",
    "ISSN: 1020-5098",
    "Authors: Eduardo Borensztein, Andrew Berg",
    "Publication date: December 20, 2000",
    "Core question: Costs and benefits of full dollarization (adoption by one country of another country’s currency)",
    "Main comparison: Full dollarization versus the currency board option",
    "Potential advantages include:",
    "Potential disadvantages include:",
    "The analysis explicitly compares full dollarization with the currency board option, weighing trade-offs between:",
    "Subject: Banking, Currencies, Currency boards, Dollarization, Exchange rates, Financial crises, Foreign exchange, Monetary policy, Money",
    "Keywords: Currencies, currency, Currency boards, currency risk, devaluation, dollar, Dollarization, EI, exchange arrangement, Exchange rates, foreign currency, Global, money base, unit of account"
  ],
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}